Last night, SPY hit 210. A supply level for many months, hardy ever breaking 210. I had to hedge my portfolio. I used about 3% of my portfolio to hedge. Buying PUTS on SPY which were deep ITM.

Why deep ITM, not ATM and OTM? Deep ITM puts has lesser time value compared to ATMs and OTM. When hedging, we try not to spend too much on time value of the option. My PUTS were leap PUTS to further decrease time decay.

Careful in the coming days for a little profit taking. Trade with what you see on the charts, not the news and other noises floating around.